Ethereum Recovery After Bybit Hack

Ethereum (ETH) has shown signs of recovery following a sharp decline due to the Bybit hack, which impacted its price. Despite this rebound, ETH is still down nearly 18% over the past 30 days, reflecting ongoing volatility.

Notably, ETH’s RSI has rebounded to 58.6 from a low of 39.2 during the sell-off, indicating renewed buying pressure. This recovery in RSI suggests that market sentiment is gradually improving, potentially setting the stage for further price gains if momentum persists.

ETH RSI Has Recovered From the Recent Dip

ETH’s RSI is currently at 58.6, a significant increase from the 39.2 level it reached after the Bybit hack. The recovery in RSI reflects the buying momentum ETH has gained following the sharp decline.

This upward movement in RSI suggests that buying pressure has returned, aiding Ethereum’s price stabilization and possibly paving the way for future price gains if momentum continues.

Source: TradingView

RSI, or Relative Strength Index, is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100, with thresholds at 30 (oversold) and 70 (overbought).

ETH’s RSI at 58.6 is positioned in a neutral zone, leaning towards bullish momentum, suggesting Ethereum has room to grow before hitting overbought territory, which could lead to continued price appreciation as buying interest remains steady.

Ethereum Whales Accumulated After Bybit Hack

The number of Ethereum whales (addresses holding at least 1,000 ETH) has steadily increased over the past month, rising from 5,680 on January 25 to 5,828 on February 22. This marks the highest level since December 2023, indicating renewed interest and accumulation among large holders.

The increase in whale addresses signals that institutional investors or high-net-worth individuals are building positions, possibly anticipating future price gains, especially following ETH price decreases after the Bybit hack.

This growing accumulation could provide a solid foundation for ETH’s price to rise.

Source: Glassnode

Tracking Ethereum whales is crucial as their buying and selling behavior can significantly impact the market. When whales accumulate, it reduces circulating supply, potentially driving prices up through increased demand. Conversely, when they sell, it can create downward pressure on prices.

Currently, the rise in whale addresses indicates growing confidence and bullish sentiment among large investors. Although it’s at its highest since December 2023, it remains relatively low compared to historical data, suggesting room for more accumulation. If this trend continues, it could lead to a sustained upward movement in ETH price as demand outpaces supply.

Will Ethereum Finally Rise Back Above $2,900?

Ethereum’s EMA lines suggest a potential golden cross could form soon, typically signaling a bullish trend and upward momentum. If this occurs, Ethereum could test a price level near its long-term line (the blue line in the chart) around $2,876. Breaking this resistance might open the door for a move to $3,020.

If the uptrend continues with strong momentum, ETH could even reach as high as $3,442.

Source: TradingView

However, ETH has struggled to reclaim levels above $2,900 in recent attempts, indicating possible resistance and market hesitation. A failure to break through may lead ETH to test the $2,551 support level. If lost, a sharper decline could occur, potentially falling to $2,159.